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Transact: eight key facts from platform's 2017 financial report

Take a look at the figures that show why platform company Transact said last year was one of its ‘most rewarding so far.’

Transact

The headlines around platforms' financial statements have tended to read the same over the last few years: profits up, assets up, inflows up. 

Nowhere is this more obvious than with Transact, which has consistently posted growth through its holding company Integrated Financial Arrangements. 

So what do the latest batch of figures, covering the financial year ending 30 September 2017, tell us about Transact? New Model Adviser® platform correspondent Christine Dawson dug into the numbers to find out. 

 

 

 

Transact

The headlines around platforms' financial statements have tended to read the same over the last few years: profits up, assets up, inflows up. 

Nowhere is this more obvious than with Transact, which has consistently posted growth through its holding company Integrated Financial Arrangements. 

So what do the latest batch of figures, covering the financial year ending 30 September 2017, tell us about Transact? New Model Adviser® platform correspondent Christine Dawson dug into the numbers to find out. 

 

 

 

Float on

New Model Adviser® revealed that Transact planned to float back in 2015.

Transact chairman Michael Howard (pictured), said in his opening statement in the financial report that the platform company has spent the last year getting ready to list on the London Stock Exchange.

He said this front is progressing as hoped and he is optimistic that conditions will remain favourable, with the plan still for Transact to list in the first half of 2018.  

As part of the preparations Howard has actually stepped down as chairman of the company in order to meet guidelines that stipulate a company should have a non-executive, rather than an executive, director as it chairman. Howard will still be on the board of Transact as a director following the float. Find out more here

Profit

Pre-tax profits for Transact jumped by £10.8 million, to £37 million in 2017. This represented a 41% increase on the same reporting period last year

Chief executive Ian Taylor said the year ending 30 September 2017 had been one of the company's ‘most rewarding so far.’

Dividends

With a number of adviser shareholders, Transact's dividend payment always generates interest. 

Based on profit for the year to 30 September 2017 and Transact's policy of distributing 65% of pre-tax earnings, it will be paying an interim dividend to shareholders of £19.4 million in January, 2018.

This equates to a dividend of £17.18 for every A, B and C share in the company, and a dividend of £13.18 for every D share. 

Inflows

Gross inflows of £5.3 billion were 49% higher than last year and net inflows were 66% higher at £3.7 billion. 

Revenue

Annual commission income, that is the money made from charges, increased by £10.6 million, or 18%,  to £69.5 million in the financial year ended 30 September 2017.

Wrapper administration fee income increased by 12.3%, £800,000, to £7.3.

These two recurring revenue streams made up 95.8% of total fee income.

Funds

The platform ended the year with 151,000 clients, up 13% from the previous year. In the same period funds under direction increased 13.5% to £27.9 billion.

Clients

Transact has over 151,000 clients across the UK managed by over 5,000 financial advisers.

 

Share price

Earnings increased by 43% from £18.41 per share to £26.39 per share, for the  A, B and C shares.

 

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